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Mutual Fund Review: Magnum Children´s Benefit Plan

Investment Objective
The investment objective of the scheme will be to provide attractive returns to the Magnum holders / Unit holders by means of capital appreciation through an actively managed portfolio of debt, equity and money market instruments. Income generated through the receipt of coupon payments, the amortization of the discount on the debt instruments, receipt of dividends or purchase and sale of securities in the underlying portfolio, will be reinvested. The following table shows percentage portfolio allocation.

Asset Allocation

Instrument

% of Portfolio of Plan A & B

Risk Profile

Equity and related instruments

Not more than 25%

Medium to High

Debt instruments (including Securitized debt) and Govt. Securities and Money market instruments

Uto 100%

Low to Medium

Securitized Debt

Not more than 10% of investments in debt

Medium to High


Scheme Highlights
1. Open ended Income Scheme.

2. Parents/Guardians/Relatives/Institutions and NRIs can invest on behalf of the child. The child should be above 3 months and below 15 years of age as on the date of investment. Proof of age is not required. However, the Trustees and/or the AMC may, if considered necessary, in their sole discretion ask for proof of the same.

3.Magnums / Units under the scheme can be repurchased on any business day at NAV related prices. Investors or donors investing through the parent who desire that the investment be locked-in till the Magnum holder / Unit holder attains the age of 18 years, they may do so by indicating it at the appropriate place in the application form at the time of application.

4. The funds collected under the scheme shall generally be invested in equity, debt and money market instruments consistent with the objective of the scheme.

5. On reaching 18 years of age, Magnum holders / Unit holders will have an option to withdraw their holdings either as a lumpsum amount or staggered over a period of five years on annual/semiannual basis. In case the Magnum holder / Unit holder opts for the staggered redemption option, the corpus on maturity will be frozen and will be invested in instruments which seeks to provide capital protection such as bank deposits, Government Securities (the maturities of which will not exceed the residual maturity of the corpus) or in the call money market. In the case of the staggered redemption option, it is deemed that the Magnum holder / Unit holder has redeemed his investment under the scheme and will no longer be eligible for any benefits under the scheme.Alternatively, Magnum holders / Unit holders may also be permitted to continue their investment under the scheme even on completion of 18 years of age.

6. The scheme will provide group accident insurance cover to the Magnum holders / Unit holders or either parent against accidental death or permanent total disability relating to these accidents. In addition to this, on the accidental death of either parent the Magnum holder / Unit holder will stand to receive an additional 10% of the claim amount towards educational expenses. The cost of providing the insurance cover would be borne by the AMC. This cover will be available only for Resident Indian Magnum holders / Unit holders.

7. At the time of application or subsequently, the investor may nominate an alternate child not exceeding 15 years of age.

Launch Date
January 2, 2002

Minimum Application
Rs. 1500/- only and in multiples of Rs. 100/-. No maximum limit.

Entry Load
1.50%

Exit Load
Within 1 year : 3%; within 2 years : 2%; Within 3 years:1%

SIP SWP
Rs.500/month - 12 months Rs.1000/month - 6months Rs.1500/quarter - 12 months A minimum of Rs. 500 can be withdrawn every month or quarter by indicating in the application form or by issuing advance instructions to the Registrars at any time.

 

Other Schemes Are:

•  Magnum Gilt Fund
    i). Magnum Gilt Fund (Long Term)
    ii). Magnum Gilt Fund (Short Term)
•  Magnum Income Fund
•  MAGNUM Income Plus Fund
•  Magnum Insta Cash Fund
•  Magnum InstaCash Fund -Liquid Floater Plan
•  Magnum Institutional Income Fund
•  Magnum Monthly Income Plan
•  Magnum Monthly Income Plan Floater
•  Magnum NRI Investment Fund
•  SBI Capital Protection Oriented Fund - Series I
•  SBI Debt Fund Series
•  SBI Premier Liquid Fund
•  SBI Short Horizon Fund
 

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